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AfilCa [17]
3 years ago
7

Why does some inflation help people who owe debt?

Social Studies
1 answer:
mrs_skeptik [129]3 years ago
3 0

Answer: A. dollars are worth less and easier to pay

If someone borrows money before inflation kicks in, then the debt would be easier to pay back because the person would earn more (due to higher wages) and be able to pay off the debt faster. This is of course assuming the person pays off the debt as quickly as possible, and does not get distracted with other purchases.

In general, inflation eats at the purchasing power of money. The more money there is in circulation, the less a dollar can purchase. So this is why the value of the dollar goes down.

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Generating Win-Win Solutions
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Answer:

  1. If they really want to go together, Pat and Mark could make a one-week trip to the beach, and spend the second-week hiking in the mountains. They could also choose to go on separate trips, so each can spent the entire vacation in their desired destination. Or they could go together to one of those places and agree to let the other person choose the destination in a future trip.  
  2. Given that it´s Pat´s money, She should be able to decide, and Mark can enjoy the result of whatever she chooses. Pat could accept Mark´s choice by making sure he brings something to the table, like being in charge of organizing the vacation, and make it to a place Pat really would like to go. They could also split the money and make a small trip as well as buying either the computer or the printer, but not both.  
  3. Pat could try to change her behavior and use the opportunity to ask Mark to change something she dislikes about him. Or, they could just accept that Pat is just not an organized person, find something Mark is not good at as well. Let´s say, ironing his own clothes. They could agree that each of them will take charge of what the other person won´t do.
  4. It´s difficult to find a win-win resolution to this case because workers have a legal right to assemble and fight for fair wages. Management could concede on a lower raise as long as they can offer some other perks, like providing food for their employers.

Explanation:

Personally, win-win strategies help me understand that when resolving conflicts one must consider the other side´s needs and be willing to compromise. I usually become a little stubborn when in such a situation, focusing on how I´m right and others should accept that. Trying to come with win-win solutions will probably help me get better results and keep relationships healthy.

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